Full Report - Port Douglas Chamber of Commerce

Occupancy rate in low seasons is declining, exacerbating seasonal
impact on profit
Nights ('000)
200.0
160.0
120.0
80.0
40.0
Occupancy rate 2005 2006 2007 2008 2009 2010 2011 1
High season 64.3% 62.5% 65.3% 57.5% 61.5% 60.6% 59.5%
Shoulder season 45.8% 46.8% 41.1% 40.4% 40.4% 38.5% 42.3%
Low season 38.0% 40.8% 36.0% 32.0% 29.3% 25.9% 24.8%
© MBS MBA 2012 Student Project – Revitalising Port Douglas
Douglas region - Visitor nights and Number of beds
Total visitor nights is declining
in the low seasons
0.0
Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11
Visitor nights (rolling qtrly) Number of beds
10.0
8.0
6.0
4.0
2.0
0.0
Key issues
1 Assuming Nov-Dec 2011 occupancy rate is the same as in 2010.
Note: High season: Jul-Oct, Shoulder: Nov-Dec and Apr-May, Low: Jan-Mar.
Data includes accommodation with 15 and more rooms in the Douglas region between Jan 2005 – Sep 2011.
Source: ABS
Beds ('000)
• Room nights volume has become
more volatile and is declining in
the
low seasons
• Occupancy rate in peak seasons
has averaged around 60% in
the past 3 years, relatively low
compared to Queensland (69%)
and Australian average (65%).
• In low seasons, occupancy fell
from 41% in 2006 to 25% in 2011,
adding pressure on profitability
• Overall low occupancy rate signals
oversupply of accommodation
• Wide seasonality adds complexity
into pricing and operational issues
such as staffing, opening hours
and inventory management
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